i recently did a web search using the phrase “without fractional reserve”.
here are some of the uses of this phrase.
“Without fractional reserve lending (leverage), a.k.a. the creation of “bank money” by banks, economic activity expands without busts. With increasing amounts fractional reserve lending, there are periodic booms and busts. A bust results when marginal credit that cannot be serviced is liquidated.”
http://www.gold-eagle.com/editorials_01/parks021701pv.html
"Without fractional reserve banking there would be more savings and less economic activity. The economic activity that occurred would be more rational than it is with fractional reserve banking. Over time, better projects would be built and there would be more innovation because investors would be more focused on rational investments. This would stabilize economic outcomes over time, as more good ideas were implemented as were fewer bad ones. "
http://mitchell-langbert.blogspot.com/2009/01/banking-system-has-caused-economic.html
"Can we have a Capitalist system without fractional researve banking? I think the answers are Yes and No, but I am not sure.
Is it possible? Yes.
Is it likely to work? No, because without fractional reserves you must accurately match monetary supply and output or you get instantaneous and punishing inflation or deflation any time there is a mismatch between monetary supply and output. Since it is extremely difficult to accurately measure output you wind up with a dynamically-unstable system.
It may be possible to compensate for this, but its hella-hard if ****ups destroy your economy."
http://www.tickerforum.org/cgi-ticker/akcs-www?post=77457
“Without fractional reserves, banks cannot make any loans of any kind as they would not be in a position to give their clients their savings if they have made loans. Only someone completely ignorant of a real capitalist economy could make such a suggestion and, unsurprisingly, this position is held by members of the “Austrian” school (particularly its minimum state wing).”
http://www.infoshop.org/faq/secC8.html
these were really the only search returns that seems to deal directly with the issue.
do these quotes seem accurate in describing economic activity without fractional reserves of any sort?
input and extrapolation would be appreciated
sthomper